Social Media is the buzz right now. Many professionals in the media world are being inundated with requests about social media. In fact many businesses are contacting professionals saying, "I only want to talk about Social Media"
Social Media is really the long tail of PR, PR builds a brand and so does social media. Here are some key points that I intend to elaborate on in the show and in our work.
Concept #1: Advertising and Marketing is the first thought of Entrepreneurs and Business owners when they try to develop leads and business, but there are some inherent problems...
a. Ratio 1:1 3:1- Your goal in an advertising budget is to create a 3:1+ ratio. In other words for every dollar you spend you get 3 back. If you create a 1:1 ratio it might be working and needs some tweaking but most likely you are doing something right. 2:1-3:1 is getting much better. Your going to profit from this if your margins are correct.
The problem with advertising is the INITIAL INVESTMENT....
You have to spend money to find the right formula in advertising. Each and every medium and category has it's own price point as well. In other words $5,000 dollars may seem like a lot of money to you but that's one ad in a publication for a week, a day, a month. $b. 5,000 can be spent in Pay Per Click in a an hour if you wanted in the right category.
The good news is that your response is usually immediate good or bad.
You have to be willing to invest the money into the test phase in order to find that ratio.
That investment should be based ultimately on how much money you want to make a month a quarter, etc. In other words If you want to create $10,000 in sales a month then you should consider a $3333.33 a month budget. Adjust the ratio accordingly to testing, market and category.
b. Because advertising is our initial response to more sales. We try to equate that same model to PR and Social Media. That is not going to work because Social Media is about long ball and interacting with your database to find out what they actually like.
THROW THE SPAGHETTI ON THE WALL AND SEE IF IT STICKS.
Social Media allows you to build a database and experiment with that database as you grow. Time and Money spent in social media can move you into a smart advertising campaign.
Social Media like Search Engine Optimization can have long lasting effects that pay exponentially over time.
The great thing about social media is that it is scalable. You can do it yourself for relatively low cost meaning that your going to put more time than money into it. However if your time is better served in running your business than getting a firm like ours to manage social media is a smart move. www.KamatoyMediaGroup.com can be reached at 619-573-9456
(This is a working concept and it shall be continued...)